Celsius Dump Triggers Ethereum Dive: $35 Million Sell-Off Sends ETH Price Crashing
January 23 2024 - 4:45AM
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Celsius Networks, currently undergoing bankruptcy proceedings, has
engaged in significant Ethereum transactions that are causing
ripples within the digital currency landscape. In the past 10
hours, on-chain analysts at LookonChain detected noteworthy
transfers, including a 13,000 ETH deposit ($30 million) on Coinbase
and an additional 2,200 ETH ($5 million) on FalconX. These
transactions suggest a proactive stance by Celsius in addressing
its ongoing financial challenges. Related Reading: XRP Crash Fears
Mount As Whale Dumps 26 Million Tokens – Details Celsius Sells
$125M ETH, Maintains $1.3B Reserve According to Arkham
Intelligence, Celsius sold more than $125 million worth of Ethereum
(ETH) coins between January 8 and January 12. The primary goal of
this auction is to pay off creditors. Dune Analytics also revealed
a more widespread pattern of redemptions, with over $1.6 billion of
staked Ethereum being redeemed during the same period. Since the
Shanghai update last year, the amount of redemptions recorded is
the highest. The #Celsius wallet deposited 13K $ETH($30.34M) to
#Coinbase and 2,200 $ETH($5.13M) to #FalconX again in the past 10
hours. Currently, 2 staking wallets of #Celsius still hold 557,081
$ETH($1.3B).
Address:https://t.co/3gGOucC9gYhttps://t.co/zodN4gzVHKhttps://t.co/Jjt9fCN2Ej
pic.twitter.com/E9DIZ9KDAH — Lookonchain (@lookonchain) January 23,
2024 Despite facing financial constraints imposed by the court,
Celsius still holds a substantial Ethereum reserve. This reserve
amounts to over 557,000 coins in two staking wallets, with a total
valuation of approximately $1.3 billion. The size of this reserve
adds a layer of complexity to Celsius’ current financial situation
and underscores the evolving narrative within the crypto space.
Source: LookOnChain As part of its obligations to creditors,
Celsius has been actively liquidating its Ethereum holdings. These
auctions, aimed at paying off outstanding debts, are integral to
Celsius’ bankruptcy proceedings. Source: LookOnChain The market has
responded to these Ethereum transactions, resulting in a 4% decline
in the price of ETH. The cryptocurrency slipped below the $2,350
mark, raising concerns among analysts, especially as ETH now wavers
below its crucial demand zone ranging from $2,380 to $2,461.
Analysts predict that a failure to maintain this level could lead
to a potential retreat towards the $2,000 mark. Ethereum currently
trading at $2,307.2 on the daily chart: TradingView.com Wealthy
Investors Trigger Ethereum Profit-Taking Santiment’s historical
data reveals that significant transactions by wealthy investors,
commonly known as whales, often trigger profit-taking activities
among regular ETH holders. This phenomenon intensifies selling
pressure and contributes to price declines. Related Reading: From
Highs To Lows: Solana’s Price Journey – Can It Recover From FOMO
Fumble? Meanwhile, decreasing funding rates suggest an underlying
optimism in the market, hinting at a possible cooldown in
previously overheated perpetual markets. This situation leaves room
for ETH to rebound once the selling pressure subsides. As the
bankruptcy drama of Celsius unfolds, the scrutiny on its Ethereum
transactions and the resulting market dynamics will persist.
Investors and observers are closely monitoring the situation,
eagerly awaiting further developments and anticipating the broader
implications for both Celsius and the crypto ecosystem. Featured
image from Shutterstock
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